Don't expect the District of Columbia to return to the market anytime soon, according to Ellen M. O'Connor, the city's deputy mayor for finance.
"We're nearly dead from the last one," she said, referring to the city's Oct. 24 deficit bond issue. The $335.46 million general obligation issue included $230 million of variable-rate bonds, and $105.46 million of fixed-rate bonds.
Once the bonds are completely paid off in 12 years, the city will have eliminated an accumulated general fund deficit of $332 million. Unlike other jurisdictions, the city did not use the bonds to cover a current general fund deficit.
The variable-rate debt, backed by letters of credit from three double-A rated Japanese banks, also featured a swap arrangement with Pryor, McClendon, Counts & Co. and Merrill Lynch & Co. that allowed the city to obtain fixed-rate debt service payments.
"It was quite an educational experience," Ms. O'Connor said of the transaction. "I didn't realize how innovative it was until we received so much feedback. We've received a lot of interest from other governmental entities and investment banking firms."
Ms. O'Connor said the city probably will not tap the market again until late winter or early spring.